Florida Claims Adjuster Exam, 6-20 All Lines Adjuster- Florida- Review| 332 Questions, Exams of Business Ethics

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Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Something that causes a loss. - CORRECT ANSWER Peril Something that increases the probability that a loss will occur. - CORRECT ANSWER Hazard A policy condition, either based on information in the insureds application or inserted by the insurer. It is a guarantee of a fact. - CORRECT ANSWER Warranty An untrue statement by the insured, made in an application for insurance but which does not become a part of the policy. - CORRECT ANSWER Misrepresentation The failure of the insured to reveal relevant facts known to the insured in applying for insurance. - CORRECT ANSWER Concealment Property insurance policies usually contain an abandonment clause, stating the insured cannot dump damaged property on the insurer and demand its full value. - CORRECT ANSWER Abandonment The insurance applies separately to each insured as if other insureds did not exist. - CORRECT ANSWER Severability The cause having the most significant impact in bringing about the loss under a first- party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. Courts employ a set of rules to resolve causation disputes when a property policy states that it covers or excludes losses "caused by" a peril and there is more than one peril at work in a fact pattern. Under common law, whether the policy provides coverage depends on which peril is chosen as the proximate cause. - CORRECT ANSWER Proximate Cause Physical harm to tangible property. - CORRECT ANSWER Direct Loss Economic loss which flows as a result of direct loss. - CORRECT ANSWER Indirect Loss Replacement Cost minus Depreciation - CORRECT ANSWER Actual Cash Value(ACV) The amount, generally expressed as a fixed percentage, an insured must pay against a claim after the deductible is satisfied. It's ultimately a way for the insured and insurer to share responsibility for the risk. It can also help reduce the cost of the insurance policy premium. Coinsurance can be written on an 80/20, 90/100, or 100% rule. - CORRECT ANSWER Coinsurance Formatted: Font color: Dark Red

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Policies cover people who own and operate things, such as automobiles. - CORRECT ANSWER Personal Contract Also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. If the other agreement or condition is performed, then the conditional contract is enforceable and the parties are bound to carry out the terms of the contract. - CORRECT ANSWER Conditional Contract Principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he/she occupied before the loss occurred, no better or no worse. - CORRECT ANSWER Contract of Indemnity the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. - CORRECT ANSWER Insurable Interest 1.) Implied voluntary relinquishment, abandoning a legal advantage, need, claim or right. 2.) Agreement or added clause of a policy that excludes some losses or limits the sum of a claim, or extends coverage to add items not in a normal policy. - CORRECT ANSWER Waiver Occurs when the insurer or its representative knowingly gives up a known right under the insurance contract. - CORRECT ANSWER Express Waiver A waiver that is assumed to be in effect from a person's behavior and shows he is waiving a right. - CORRECT ANSWER Implied Waiver Monetary compensation that is awarded by a court in a civil action to an individual who has been injured through the wrongful conduct of another party. - CORRECT ANSWER Damages When an insured has a right to collect damages from another party, but instead elects to claim the damages under his insurance policy, his rights against the other party are transferred to the insurer. - CORRECT ANSWER Subrogation All policies provide that any changes to the policy be made by the insurer, in writing. - CORRECT ANSWER Changes The condition states that coverage applies only to losses or occurrences that take place during the policy period. (Prior to the stated date and time of termination). - CORRECT ANSWER Policy Period

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Condition limiting coverage to occurrences or losses that take place only within a stated geographical region. - CORRECT ANSWER Policy Territory The principle of indemnity dictates against duplicate recovery for the same loss. - CORRECT ANSWER Other Insurance The insured may cancel at any time, for any reason, without advance notice. If the conpany wishes to cancel, it must provide some degree of advance notice so the insured will have time to replace the coverage. - CORRECT ANSWER Cancellation A written contract of or written agreement for or effecting insurance, or the certificate thereof, by whatever name called, and includes all clauses, riders, endorsements and papers which are a part thereof. - CORRECT ANSWER Appraisal Is a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. - CORRECT ANSWER Insurance Acts as a temporary contract until the policy is issued. - CORRECT ANSWER Binder 5 days. - CORRECT ANSWER How many days should an insurer give for prior notice of cancellation of a binder? Any insurance wherein payment by the insurer will be paid directly to the insured or other specifically named interests. - CORRECT ANSWER Property Insurance Payment will be on behalf of the insured to another, based upon the insureds liability to the recipient. Simply stated, Liability is "Negligence of the Insured". - CORRECT ANSWER Liability Insurance A Clause in a contract of insurance that provides, in the event of payment being made under the policy in relation to the insured risk, that payment will be made to a 3rd party rather than to the insured beneficiary of the policy. - CORRECT ANSWER Loss Payee Clause A property insurance provision granting special protection for the interest of a mortgagee named in the policy, in effect setting up a separate content between the insurer and the mortgagee. - CORRECT ANSWER Mortgage Clause Covers items that are not permanently attached to the main dwelling, such as a shed, fence, etc. - CORRECT ANSWER Other Structures Helps identify the kinds of risk which are eligible for either ocean or inland Marine insurance. - CORRECT ANSWER Commercial Inland Marine

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

This endorsement covers the insured for enforcement of laws which require demolition of undamaged portions of buildings. - CORRECT ANSWER Building Ordinance Coverage Covers a much higher limit and goes above and beyond claims directly relating to your home and auto, it provides your assets from an unforeseen event, such as a tragic accident in which you are held responsible for damages or bodily injuries. - CORRECT ANSWER Umbrella Policy Prevents an insured from coverage if the insured knew the loss was probable at the time of the insurance contract. - CORRECT ANSWER Known Loss The limit of coverage is set at an amount somewhat higher than expected peak values. - CORRECT ANSWER Value Reporting Covers direct and indirect losses related to properties other than one to four family dwellings and farm properties. - CORRECT ANSWER Commercial Property Insurance Provides coverage for loss of or damage to money, securities, and other property resulting from theft committed by an employee. Theft is defined as the unlawful taking of money, securities or other property to the deprivation of the insured. - CORRECT ANSWER Employee Theft Aggreement to fulfill a contractual obligation used frequently in construction and supplying goods. - CORRECT ANSWER Bid Provides comprehensive health services to its members for a prepaid fixed fee, equivalent to an insurance premium. - CORRECT ANSWER Health Maintenance Organization (HMO) A selected group of hospital's and medical practitioners in a given area who have joined together in an effort to reduce medical costs. - CORRECT ANSWER Preferred Provider Organization (PPO) Is an equitable principle to the effect that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that impression and is damaged as a result, the guilty party may be legally prohibited(estopped) from asserting that the fact does not exist. - CORRECT ANSWER Estoppel Motor vehicle or mobile home is a total loss. - CORRECT ANSWER Salvage Any material which is or may have been a motor vehicle or mobile home, with or without all component parts, which is inoperable and which material is in such condition that its

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

highest or primary value is either in its sale or transfer as scrap metal. - CORRECT ANSWER Junk Agent for a principal/Client. The legal or special relationship of trust, confidence, or responsibility between 2 or more parties. - CORRECT ANSWER Fiduciary Agent Insurer is one formed under the laws of its this state. - CORRECT ANSWER Domestic Insurer Insurer is one formed under the laws of any state, district territory, or commonwealth of the United States other than this State. - CORRECT ANSWER Foreign Insurer Insurer is an insurer other than a domestic or foreign insurer. - CORRECT ANSWER Alien Insurer The authority given by an insurer or employer to a licensee to transact insurance or adjust claims on behalf an insurer or employer. - CORRECT ANSWER Appointment Material which is or may have been a motor vehicle or mobile home, with or without all component parts, which is inoperable and which material is in such condition that its highest or primary value is either in its sale or transfer as scrap metal or component parts or both. - CORRECT ANSWER Derelict Covers repairs to mechanical parts of your vehicle that break. Even covers break in events not related to an accident. - CORRECT ANSWER Mechanical Breakdown Coverage Selling an item and stating that it is required by law. - CORRECT ANSWER Sliding $5,000 - CORRECT ANSWER What is the Death Benefit amount for PIP? $10,000 - CORRECT ANSWER What is the amount for medical and disability benefits afforded by PIP? The Department of Highway Safety and Motor Vehicles. - CORRECT ANSWER Who is the Financial Responsibility Law administered by?

• Medical-80% of responsible expenses are paid for necessary medical, surgical, X-Ray and dental.
• Work Loss-60% of any loss of gross income and loss of earning capacity reimbursed.
• Replacement Services-100% for the cost of having household services performed by others.
• Death-Effective 01/01/2013 the death benefit will be $5,000 in addition to the $10, in medical and disability benefits afforded by PIP. - CORRECT ANSWER What are the Basic PIP Benefits?

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Are salaried employees under the supervision of the home, branch or regional claims department of insurers. - CORRECT ANSWER Company or Staff Adjuster Offer their services on a fee-for-service basis. They represent many insurers. - CORRECT ANSWER Fee Adjusters Employee or agent of an adjustment bureau which serves multiple company clients such as the GAB Business Services, Inc and Underwriters Adjusting Company both national firms. - CORRECT ANSWER Bureau Adjuster Are Self-Employed and are not affiliated with either insurers or bureaus. They serve as adjuster representatives of insurers, and their services are compensated on a fee-plus- expenses basis for each loss handled. - CORRECT ANSWER Independent Adjuster Is a claims adjuster who is an advocate for the policyholder in appraising and negotiating an insurance claim. - CORRECT ANSWER Public Adjuster

• Liability(Bodily Injury)
• Property Damage
• Uninsured Motorist
• Medical Payments
• Personal Injury Protection
• Collision Deductible
• Comprehensive Deductible
• Towing Coverage
• Rental Coverage - CORRECT ANSWER What are the Characteristics of a Personal Auto Policy Declaration Page?
• Solictitation of Insurance
• Negotiation of Insurance
• Effecting Coverage (Binding insurance coverage)
• Transacting Insurance Matters(during and after insurance is bound). - CORRECT ANSWER What are examples of Transacting Insurance?
• Significant and permanent loss of a bodily function or
• Permanent injury other than scarring and disfigurement or
• Significant and permanent scarring or disfigurement or
• Death - CORRECT ANSWER What are thresholds of the No-Fault Law? A simple verification of bills and estimates or it may be expanded to include photographs, witness canvasses, or recorded statements as the circumstances require.
• CORRECT ANSWER What is the adjusters investigation limited too?
• Inquiry

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

• Verification
• Comparison - CORRECT ANSWER What are the componets of a investigation process ?
• Transacting Insurance outside of scope of one's license
• Misrepresentation or fraud
• Sliding
• Demonstration of unworthiness or lack of fitness
• Misappropriation of funds
• Failure to inform Department of financial services, within 30 days, after pleading guilty or no contest to a felony. - CORRECT ANSWER What are some reasons for suspension, revocation or termination of a license? Describes certain practices, penalties are provided for misrepresentation to insureds and claimants and business practices such as
• Failing to act promptly
• Failure to affirm or deny a claim when an insured is entitled there to
• Failure to explain claim denials in writing
• Failure to maintain complaint-handling procedures such as keeping accurate records of complaints. - CORRECT ANSWER Florida Unfair Insurance Trade Practices Act Covers all loss except collision or overturn. Standard deductible is $100 per car, $ per occurrence applies to losses from theft, mischief, and vandalism. - CORRECT ANSWER Comprehensive Coverage
• The legally valid claims of others must be satisfied(up to the 10/20/10 requirements)
• The owner and operator must provide certification of financial responsibility for future accidents. If not satisfied operator's driver's license and the registrations of all owned vehicle's are suspended. - CORRECT ANSWER What is the minimum requirements for the Financial Responsibility Law?
• Investigation to establish coverage, determine legal liability, and verify if the alleged damages qualify the loss for payment.
• Evaluation to determine the fair payment in accordance with the contract and applicable law.
• Negotiation of a quality settlement based on facts discovered during the evaluation process. - CORRECT ANSWER What are the basic activities in claims handling? Is the assertion of an alleged legal right against an insurer, which carries with it a demand for appropriate relief. - CORRECT ANSWER Claim One who is involved in the investigation, adjustment, negotiation and/or trial preparations of claims arising under insurance policies. - CORRECT ANSWER Claims Adjuster

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Process of disposing of an insurance claim. - CORRECT ANSWER Adjusting A written statement given by the insured to the insurer acknowledging that money received in the settlement of damages is received, not as a final payment, but as an advanced pending the outcome of a claim against the person responsible for the damage. - CORRECT ANSWER Loan Receipt Is a provision for computing and assigning to each of two or more contracts covering a claim its proportion of the amount of the loss. - CORRECT ANSWER Apportionment Under Fl Law, the adjuster should settle a third-party liability claim of an injured minor child with both parents of the injured child, presuming the settlement is for an amount not in excess of $15,000. If it is more than that it must be consummated through the Circuit or County Courts. - CORRECT ANSWER How to settle a claim for an Injured Minor?

• Failing to act promptly.
• Failure to affirm or deny a claim when an insured is entitled thereto.
• Failure to explain claim denials in writing.
• Failure to maintain complaint-handling procedures, such as keeping accurate records of complaints. - CORRECT ANSWER What are the violations of the Unfair Trade Practices Act? That any person who is damaged by certain insurer practices is granted a right to sue the insurer for damages. - CORRECT ANSWER Section 624.155 of the Florida Statues provides? An insurance contract is based, places serious responsibilities on the claim adjuster with regard to conduct, work habits, and specific claims handling activities. - CORRECT ANSWER The Principle Of Utmost Good Faith 10=10,000 Livability per person injured-amount that will be paid out for injuries to one person. 20=20,000 Combined Total Liability for all injuries-this is the most paid out for injuries for an accident. 10=10,000 Property Damage-the most paid out for damage caused to property of others. - CORRECT ANSWER What does 10/20/10 mean? A form of coverage known as a NAMED NOOWNER policy is required, this form offers insurance coverage only while the insured is operating automobiles owned by others. - CORRECT ANSWER What is SR-22?
• The legally valid claims of others must be satisfied(up to the 10/20/10 requirements).

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

• The owner and operator must provide certification of financial responsibility for future accidents. - CORRECT ANSWER What are the two things that need to happen for financial responsibility that did not exist at the time of the accident?
• Those who comply with the law have limited immunity from tort suits.
• As one may not be able to seek legal liability damages against another for bodily injuries, the law substitutes, under one's own insurance, the coverage defined as Personal Injury Protection(PIP) - CORRECT ANSWER What are the main elements of the FL Law? 90 days. - CORRECT ANSWER How many days does a Non-Resident's vehicle physically present in FL have subject to the No-fault law?
• The owner is denied the immunities from legal liabilities that are granted to those who comply.
• The owner is personalltly liable for payment of PIP benefits to those entitled to such benefits.
• The owner's driver's license and vehicle registration are subject to suspension, as under the Financial Responsibility Law. - CORRECT ANSWER What are the three penalties for non-compliance with the compulsory insurance requirements?
• Increases medical benefits from 80% to 100%.
• Increases income loss from 60% to 80%.
• Applies only to named insured and family members. - CORRECT ANSWER What does Extended PIP do?
• Increases the $10,000 limit by amounts such as $10,000, $25,000, $40,000, and $90,000(again, for a premium increase).
• Increases do not impact $5,000 death benefit.
• Applies only to insured and family members. - CORRECT ANSWER What does additional PIP do? Used to insure the automobile exposures of individuals and families. - CORRECT ANSWER Personal Auto Policy Insurers the automobile exposures of Business. - CORRECT ANSWER Business Auto Policy
• Private Passenge Type Auto-Station Wagons, jeeps, pickups, panel trucks, vans, and utility trailers.
• Public Auto- Buses and Taxicabs
• Commercial Auto- truck tractors, semi-trailers, commercial trailers, and Service trailers.
• Special types of vehicles like cherry pickers, air compressors. - CORRECT ANSWER What are the kinds of autos owned by businesses and covered under a Business Auto Policy?

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Used to insure businesses engaged in selling, servicing, repairing, parking or storing autos. - CORRECT ANSWER Garage Coverage Form Used to insure businesses that are hired to transport goods for someone else. - CORRECT ANSWER Truckers Coverage Form Used to insure the automobile exposures of all businesses other than garage or trucking businesses. - CORRECT ANSWER Business Auto Coverage Form

• Declarations
• Common policy conditions
• One of the two coverage forms, Occurrence, or Claims-Made
• A Nuclear Energy Liability Exclusion endorsement
• Various other endorsements may be attached to broaden or restrict the coverage provided by these basic forms. - CORRECT ANSWER What does Commercial General Liability contract includes? Identifies the named insured and address, states the policy period and premium and miscellaneous information about the insured, and specifies the limits of coverage that apply. - CORRECT ANSWER Declarations 30 days. - CORRECT ANSWER The policy states that if a company wishes to cancel, How many days must it give prior notice? Excludes all hazards related to nuclear energy. - CORRECT ANSWER Nuclear Endorsement Bodily Injury and Property Damage Insuring Agreement. - CORRECT ANSWER What is Coverage A? Physical harm and includes sickness or disease or death resulting there from. - CORRECT ANSWER Bodily Injury(BI) Physical injury to tangible property, including loss of use of that property. - CORRECT ANSWER Property Damage(PD) An accident, including. continues or repeated exposure to substantially the same general harmful conditions. - CORRECT ANSWER Occurrence A sudden, unexpected event. - CORRECT ANSWER Accident Is the U.S. and its territories or possessions , Puerto Rico and Canada, including international waters and airspace between these places. - CORRECT ANSWER Coverage Territory

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Determines how policy will respond. - CORRECT ANSWER The Coverage Trigger Applies to BI or PD which occurs during the policy period, regardless of any later time at which a claim is made. - CORRECT ANSWER The Occurrence form Applies only to a BI or PD which occurs on or after the retroactive date, and for which the claim is received or recorded by an insured or the company during the policy period.

• CORRECT ANSWER The Claims-Made form Establishes the original policy date for a serious of claims made policies. - CORRECT ANSWER Retroactive Date Coverage excludes injury or damage which is expected or intended by the insured. - CORRECT ANSWER Intentionally Injury If the insured is in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, liability associated with serving liquor to intoxicated or underage persons or in violation of a law is excluded. - CORRECT ANSWER liquor Liability Coverage excludes liabilities under a workers compensation or similar law or arising from injuries to employees of the insured. - CORRECT ANSWER Employee Injuries There a basically no coverage for injury, damage or clean up costs caused by pullutants, subject to minor exceptions. - CORRECT ANSWER Pollution Personal and Advertising Injury. - CORRECT ANSWER What is Coverage B? Medical Payments. - CORRECT ANSWER What is Coverage C?
• Owners and Contractors Protective Liability(OCP)Form.
• Liquor Liability Coverage Form.
• Products/Completed Operations Liability Coverage Form
• Pollution Liability Coverage and Pollution Limited Form. - CORRECT ANSWER What are the General Liability Insurance Forms? Covers liability arising from rendering of or failure to render professional services. - CORRECT ANSWER Professional Liability Insurance Coverage Provides coverage for BI or PD arising out of farming operations of personal activities. - CORRECT ANSWER Farm Liability Coverage Form

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Provides coverage for liability arising from the insureds performance of farming operations for another, for a charge under any contract or agreement. - CORRECT ANSWER The Custom Farming Endorsement Applies the basic Liability and Medical Payments coverages to injuries to farm employees, but not to employees eligible to receive workers compensation benefits. - CORRECT ANSWER The Farm Employers Liability/Medical Payments Endorsement This Form provides employers witg claims- made coverage for liability arising out of claims for injury to an employee because of an employment-related offense. - CORRECT ANSWER Employment Related Practices Liability An entity that is required to be licensed or registered with the Florida Office of Insurance Regulation but is operating without the proper authorization is identified as an unauthorized insurer. - CORRECT ANSWER Unauthorized Entity Certificate of Authority. - CORRECT ANSWER To be Authorized and transact business in FL what must you have? Licensed to write property/casualty, surety, or health insurance. - CORRECT ANSWER General Lines Agent 2- 20 Must be licensed, appointed by a General Lines Agent and may assist in transactions in the OFFICE ONLY. - CORRECT ANSWER Customer Representative 4- 40 Must be licensed, appointed by a General Lines Agent and transact AUTO insurance in the OFFICE ONLY. - CORRECT ANSWER Limited Customer Representative 4- 42 Investigates, Evaluates, and Negotiates Claims. - CORRECT ANSWER All Lines Claims Adjuster 6- 20 Participate in 24 hrs of continuing education every 2 years. - CORRECT ANSWER A General Lines Adjuster is required to do what? 30 days. - CORRECT ANSWER A licensee must notify the Department in writing in how many days for change of name, address, phone number or email? Cover only losses that both occurred and were discovered during the policy period, or within one year of it's expiration. - CORRECT ANSWER Loss Sustained Any loss discovered during the policy period or within 60 days after it's expiration is called regardless of when it occurred. - CORRECT ANSWER Discovery

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

The policy covers only property the named insured owns or holds or for which the insured is legally liable, and for the benefit of the insured. - CORRECT ANSWER Property Covered Covers the named insureds legal liability if it is the safe depository for customers property. Perils covered include burglary, robbery, destruction on damage. - CORRECT ANSWER Safe Depository Money is valued at its face value; securities at their value on the day loss is discovered; and other property at actual replacement cost or, if less, cost to repair. - CORRECT ANSWER Valuation A slightly different set of basic Crime Coverage Forms is tailored for insuring governmental entities. - CORRECT ANSWER Government Crime Covers the named insureds legal liability for guest's property while in a safe deposit box or while the property is inside the premises or in the named insureds possession. - CORRECT ANSWER Guests' Property Crime Insurance may be written as a separate policy, with it's own Declaration and Conditions, or as a package policy, bundled together with Employee Dishonesty. - CORRECT ANSWER Commercial Crime Forms Provides coverage for loss by forgery or alteration of negotiable instruments, such as checks, drafts, promissory notes or similar instruments calling for payment of a sum certain in money. - CORRECT ANSWER Forgery Or Alteration Will pay for the loss of or damage to money, securities and other property resulting from using a computer to fraudulently transport from inside the insureds promises to a person or place outside the premises, which encompasses anywhere in the world. - CORRECT ANSWER Computer Fraud Covers for all types of property, when surrendered away from the premises as a result of a threat to do bodily harm to the insured or an employee, or to a relative or invitee of either, who is being held captive. - CORRECT ANSWER Extortion Offers coverage for non-owned property for which the insured is legally liable while the property is on the premises of the insureds client. - CORRECT ANSWER Clients Property Covers theft, disappearance, or destruction of securities; and burglary or robbery of property other than money or securities, all from within designated places of safe depository. - CORRECT ANSWER Lesses of Safe Deposit Boxes

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Is designed to cover loss due to the fraudulent transfer of funds through the use of a telephone or fax machine. - CORRECT ANSWER Funds Transfer Fraud Covers theft, disappearance, or destruction of securities, which have been deposited with a custodian, such as a bank or stockbroker. - CORRECT ANSWER Securities Deposited with Others The dollar amount that the insured pays before the insurer is required to pay the remainder of the loss is known as? - CORRECT ANSWER The deductible Which loss settlement provides new for old? - CORRECT ANSWER Replacement cost Give appropriate legal advice and write binding contracts - CORRECT ANSWER the claims adjuster's role in the insurance industry includes Lighting, Explosion and Fire - CORRECT ANSWER following are examples of a peril The clause that prohibits the insured from dumping damaged property on the insurance company and demanding to be paid in full is? - CORRECT ANSWER The abandonment clause When a policy change results in broadened coverage with no additional premium, the insured automatically receives the benefit under the principle of? - CORRECT ANSWER Liberalization The chance of financial loss is known as? - CORRECT ANSWER Risk Hurricane insurance in coastal areas in Florida is written subject to which of the following deductibles? - CORRECT ANSWER Percentage When there is an unbroken connection between an occurrence and the damage that arises from the occurrence, and all the resulting damage happened on account of that occurrence, this is known as? - CORRECT ANSWER The principle of proximate cause Consideration must be given to at least one party - CORRECT ANSWER characteristics of a contract When two or more policies apply to the same loss, the one that pays first is called? - CORRECT ANSWER Primary The clause that protects the lender in a real property policy is the? - CORRECT ANSWER Mortgagee Clause The concept that one should not profit from the payment provided by an insurance policy is known as? - CORRECT ANSWER Indemnity

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Payment the insurance company makes directly to the insured is? - CORRECT ANSWER Property or first-party insurance To be considered an insurance contract, a policy must be? - CORRECT ANSWER Written When the insured transfers his/her rights to collect for damages to the insurer, it is known as? - CORRECT ANSWER Subrogation If an insurance policy is unclear or ambiguous, in whose favor does the policy respond?

• CORRECT ANSWER The insured A partial owner of a building cannot receive full value for the building in the event of a loss because of? - CORRECT ANSWER Insurable interest Reduces the insured's damages by the degree of negligence - CORRECT ANSWER Comparative negligence Exclusions, Declarations and Endorsementd - CORRECT ANSWER the following are part of an insurance policy replacement cost minus depreciation - CORRECT ANSWER ACV The Florida Valued Policy Law requires the insurer to pay $200,000 - CORRECT ANSWER The insured's house is totally destroyed in a fire. The house is insured for $200,000. The adjuster who investigates the claims determines the ACV of the home is $185,000. No payment is made until the loss equals or exceeds the amount of the deductible and then the loss is paid in full - CORRECT ANSWER describe a franchise deductible Private - CORRECT ANSWER All of the following are characteristics of an insurance contract EXCEPT? Personal, Private, Conditional, Adhesion? Only meet with the client when the attorney is present - CORRECT ANSWER If a claimant is represented by an attorney, the adjuster should? claims information - CORRECT ANSWER Adjusters should advise claimants on? Written - CORRECT ANSWER An adjuster is required to notify a claimant when a claim is denied. The notification must be? service to others, personal respect and proper mode of conduct - CORRECT ANSWER The term ethics refers to?

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

third party claim - CORRECT ANSWER When an adjuster deals with a claimant who is not a policyholder, this claim is known as an? Decision-making - CORRECT ANSWER The successful adjuster/negotiator should understand that communication includes all of the following EXCEPT? Select one: A. Verbal and non-verbal messages B. Questioning C. Listening D. Decision-making Counseling - CORRECT ANSWER Which of the following is not a duty of the claims adjuster? Select one: A. Investigating B. Evaluating C. Negotiating D. Counseling Fiduciary - CORRECT ANSWER The adjuster's duty to the insurer is best described as? Select one: A. Friendly B. Factual C. Fun D. Fiduciary Both unethical behavior and lack of knowledge or information are correct - CORRECT ANSWER Errors and Omissions claims are a result of? Select one: A. unethical behavior B. lack of knowledge or information C. Both unethical behavior and lack of knowledge or information are correct D. Neither unethical behavior and lack of knowledge or information are correct All of the above - CORRECT ANSWER Unethical behavior affects? Select one: A. The claimant B. The adjuster C. All of the above D. The entire company The claimant must be satisfied - CORRECT ANSWER All of the following are components of negotiating EXCEPT?

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Select one: A. The issue should be negotiable B. There must be an exchange of value for value C. The parties should trust each other D. The claimant must be satisfied Try to influence settlements - CORRECT ANSWER The Civil Remedies Provision of the Insurance Code states that adjusters should not? Select one: A. Handle claims in a prompt manner B. Accompany claims payments with statements explaining coverage C. Settle claims in good faith D. Try to influence settlements 20/40/10 - CORRECT ANSWER The insured, a resident of Florida, was in an accident in Georgia. The Florida car was insured with liability limits of 10/20/10. Georgia's minimum liability limits are 20/40/10. How will the Florida policy respond? Select one: A. 10/20/ B. 20/40/ C. No coverage D. 20/40/ When the policy limit is exhausted - CORRECT ANSWER Under a PAP, when does the insurance company cease to defend the insured? Select one: A. The insurance company is not obligated to defend the insured B. After the case has been resolved C. When the policy limit is exhausted D. At the policy's expiration An accident involving bodily injury or property damage - CORRECT ANSWER The Florida Financial Responsibility Law is triggered by? Select one: A. Registration of the vehicle B. Purchase of the vehicle C. An accident involving bodily injury or property damage D. Purchase of an auto policy $10,000 - CORRECT ANSWER The insured is an owner and is insured for PIP. She is injured in an accident and has the following damages? medicals-$12,000, lost wages- $6,000. How much will PIP pay if there is a $1,000 deductible? Select one: A. $11, B. $12,

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

C. $9,

D. $10,

Age of the driver - CORRECT ANSWER Trucker insurance premiums are based on all EXCEPT? Select one: A. Radius B. Age of the driver C. Type of business D. Territory garaged Extended Non-owned Liability coverage - CORRECT ANSWER Joe works for Sinks-R- Us, Inc. As part of his compensation package, he is supplied with a company car, which he gets to take home every night. Joe wants to make sure the Liability coverage under his PAP covers him while driving his company car. What coverage would you add to Joe's PAP? Select one: A. Named Non-owned coverage B. Extended Non-owned Liability coverage C. Drive Away Liability coverage D. False Pretense coverage 10,800.00 - CORRECT ANSWER Dan has a Personal Auto Policy with Liability of 10/20/10 and basic PIP with a $1,000 deductible. He is running one day when a car strikes him. A week later he dies. Medical bills are $7,500 and lost wages are $1,000. How much, if any, will PIP pay in this claim? In an accident while riding as a passenger in a friend's car in Florida - CORRECT ANSWER Joe is an owner insured for PIP. In which of the following situations does Joe have his PIP benefits available to him? Select one: A. In a slip and fall accident in the mall in Florida B. In an accident while riding his motorcycle C. Struck as a pedestrian in Georgia D. In an accident while riding as a passenger in a friend's car in Florida No coverage because the policy expired - CORRECT ANSWER The insured bought a new car with a Mechanical Breakdown Policy. When the odometer reaches 40,000 the car has a serious breakdown involving the transmission. How does the Mechanical Breakdown Policy respond? Select one: A. No coverage because the policy expired B. No coverage because a transmission is not covered C. ACV coverage will apply D. Replacement cost coverage will apply

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

His PAP extends liability to the trailer and Part D-Physical Damage extends $1, coverage to the borrowed trailer - CORRECT ANSWER An insured borrows his neighbor's trailer to pick up his new furniture. Which of the following best describes the insured if he has an accident? Select one: A. His PAP will extend coverage if the proper endorsement is added B. Only the liability of the PAP extends to the trailer C. His auto is insured, but not the borrowed trailer D. His PAP extends liability to the trailer and Part D-Physical Damage extends $1, coverage to the borrowed trailer $30,000 - CORRECT ANSWER Jane is driving Mary's car. Jane has an at-fault accident with Bob. Mary has liability limits of 10/20/10. Jane has liability limits of 100/300/100. If Bob has $40,000 in bodily injury, how much will be collected from Jane's policy? (IGNORE PIP) Select one: A. $30, B. $10, C. $50, D. $20, $7,200 - CORRECT ANSWER Jim owns an auto and he is involved in an auto accident. He suffered $4,000 in medical expenses and $4,000 of lost income. How much does his insurance pay if he has Extended PIP? Select one: A. $7, B. $8, C. $4, D. $5, $100,000 - CORRECT ANSWER If an insured has $100,000 of unstacked UM coverage with three cars on the policy, how much is available under a UM claim? Select one: A. $0- B. $300, C. $100, D. $200, $51,500 - CORRECT ANSWER The insured has a PAP with single liability of $50,000. The following loss occurs: $37,000-BI pedestrian; $3,000-Display window; $10,000- Sports car; $1,500-Legal defense. How much would his policy pay for the loss? Select one: A. $51, B. $37, C. $40,

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

D. $50,

$650 - CORRECT ANSWER The insured is driving down the road when a low hanging branch strikes and cracks his windshield. The cost to replace the windshield is $650. The insured has a $500 collision deductible and a $250 other than collision deductible. The insurance company will pay...? Select one: A. $ B. No coverage C. $ D. $ Permissive use of insured's automobile - CORRECT ANSWER Which of the following is covered under PAP liability? Select one: A. Intentional damage B. Permissive use of insured's automobile C. Damage to property owned by the insured D. Injury to an employee in the course of employment His PIP insurance - CORRECT ANSWER Joe is injured when the jack slips as he is changing a tire in his driveway. The bill for his treatment in the emergency room is $450. Where will Joe go first to collect for his medical expenses? Select one: A. Worker's Compensation B. His PIP insurance C. His homeowner insurance D. His health insurance May purchase UM coverage more than liability limits - CORRECT ANSWER All of the following UM options are available to an insured, EXCEPT? Select one: A. May purchase UM coverage less than liability limits B. May purchase UM coverage more than liability limits C. May reject UM coverage in writing D. May elect non-stacked UM coverage in writing Trailer Interchange coverage - CORRECT ANSWER The Truckers form that provides liability coverage for damage to non-owned trailers is called? Select one: A. Interchange coverage B. Commercial Trailer coverage C. Trailer Interchange coverage D. Trailer coverage

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Other than collision - CORRECT ANSWER Hail damage to an auto is an example of? Select one: A. An exclusion to Part A-Liability B. An exclusion to Part D-Physical Damage C. Other than collision D. Collision $6,000 - CORRECT ANSWER Tom is injured in a not at-fault auto accident and has temporary injuries. What can be recovered in a tort claim if he has $16,000 in medical bills with a $1,000 PIP deductible? Select one: A. $6,000 B. $5,000 C. $15,000 D. $10,000 Named Non Owned - CORRECT ANSWER The coverage that provides Liability, Medical Payments and Uninsured Motorist for a named individual who does not own an automobile is? Select one: A. Extended Non Owned B. Driver Other Car C. Named Non Owned D. Extended PIP Bodily injury only - CORRECT ANSWER Uninsured Motorists coverage is used to cover the insured for? Select one: A. Bodily injury only B. Bodily injury and property damage C. Medical payments D. Liability Betty must use her own PIP to pay her medical bills - CORRECT ANSWER Sam is an owner and not insured for PIP. Sam borrows Fred's car, which is insured for PIP. Sam has an at-fault accident when he strikes Betty's car. Betty is insured for PIP. As a result of Sam's negligence, Betty is injured and has $5,000 in medical bills. Which of the following is true? Select one: A. Sam does not have Tort Exemption B. Betty may sue Sam and Fred for $5,000 C. Betty must use her own PIP to pay her medical bills D. Sam may recover any damages from Fred's PIP

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Collision - CORRECT ANSWER Susie is driving down the street when a dog runs in front of her car. She swerves to avoid the dog and hits a tree. This is an example of? Select one: A. Collision B. Both A and B C. Other than collision D. Neither A or B Tom who owns the house he rents to his neighbor - CORRECT ANSWER Which of the following is not eligible for a homeowners policy? Select one: A. Tom who owns the house he rents to his neighbor B. Joe who lives is a garage apartment C. A husband and wife who own a vacation home in Georgia D. Betty who rent a condominium unit Age of the homeowner - CORRECT ANSWER Homeowner policies are rated on all of the following, EXCEPT: Select one: A. Location of the dwelling B. Age of the homeowner C. Fire protection available D. Construction of the dwelling Replacement Cost - CORRECT ANSWER The insured lives in his principal residence 80% of the year. A flood loss would be paid at which of the following? Select one: A. At 80% coinsurance B. Replacement Cost C. ACV D. Valued Policy A 1-6 family dwelling - CORRECT ANSWER Under a Dwelling Policy, all of the following are eligible, EXCEPT: Select one: A. A rental apartment in a commercial building B. A 1-6 family dwelling C. A two-family dwelling owned by a corporation D. A mobile home The Emergency Program - CORRECT ANSWER When a community applies for flood coverage, until they are approved they are under: Select one: A. The Regular Program B. The Special Program

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

C. The Emergency Program D. The Flood Program A personal nature - CORRECT ANSWER If an insured sells his house to another person, the buyer is prohibited from receiving the seller's insurance policy because insurance is a contract of: Select one: A. Conditions B. Adhesion C. Indemnity D. A personal nature Dwellings owned by a corporation - CORRECT ANSWER All of the following are eligible for a Homeowner Policy, EXCEPT: Select one: A. Renters who maintain resident in any type of building B. Dwellings owned by a corporation C. Owner-occupants of 1-4 family dwellings D. Condominium unit owners Coverage C - CORRECT ANSWER Outdoor equipment used to service the premises is covered under: Select one: A. Coverage C B. Coverage A C. Coverage B D. Coverage D Liberalization - CORRECT ANSWER A contract condition of the Homeowners policy which provides that the insured gets the benefit of broadened coverage if the company adopts a broader form without an increase in premium is: Select one: A. Subrogation B. Liberalization C. Assignment D. Coinsurance Worldwide - CORRECT ANSWER The coverage territory for Personal Inland Marine Insurance (PAF) is: Select one: A. Whatever is specified in the policy B. Worldwide C. United States D. U.S., Canada, and U.S. territories

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

The insured must carry insurance of at least 80% of the cost to replace the dwelling - CORRECT ANSWER What condition must be met in a HO Policy for replacement cost to settle the loss? Select one: A. The insured must replace the item lost or damaged B. All of these answers are correct C. The insured must file the claim within 10 days D. The insured must carry insurance of at least 80% of the cost to replace the dwelling HO- 6 - CORRECT ANSWER Which HO form covers a condo owner? Select one: A. HO- 3 B. HO- 2 C. HO- 6 D. HO- 4 $44,000 - CORRECT ANSWER Joe had a Dwelling Policy with $40,000 Coverage A limit. A covered loss occurred that totaled the dwelling and the detached garage. The loss to the detached garage was $6,000. How much will be paid to Joe to cover this loss? Select one: A. $44,000 B. $40,000 C. $46,000 D. There is no coverage Chris' HO - CORRECT ANSWER Tommy and Chris leave their golf clubs in the trunk of Tommy's car when they stop to eat lunch. Both sets of clubs are stolen. Which policy covers Chris' clubs? Select one: A. Tommy's HO B. Tommy's auto C. Chris' auto D. Chris' HO An aquarium is knocked over and the fish die - CORRECT ANSWER Which of the following is not covered under Coverage C of a HO Policy? Select one: A. An aquarium is knocked over and the fish die B. A student away at school has his golf clubs stolen C. An insured's luggage is stolen from his hotel room D. A weekend guest loses his hearing aid during a fire Mortgagee Clause - CORRECT ANSWER The clause that protects the lender in a real property policy is the:

Florida Claims Adjuster Exam, 6-20 All Lines Adjuster-

Florida- Review| 332 Questions| 41 Pages

Select one: A. Coinsurance Clause B. Loss Payee Clause C. Appraiser Clause D. Mortgagee Clause $25,000 - CORRECT ANSWER Under an HO3 policy, if Coverage A is $250,000, Coverage B is: Select one: A. $10,000 B. None of the above C. $20,000 D. $25,000 Renter - CORRECT ANSWER An HO-4 Policy is designed for a: Select one: A. Condo owner B. Home owner C. All of the above D. Renter $0 - CORRECT ANSWER What is the deductible for a Personal Articles Floater (PAF)? Select one: A. $250 B. $100 C. $500 D. $0 $20,000 - CORRECT ANSWER An insured has $200,000 Coverage A dwelling coverage, under his HO-3 Policy. He incurs the following damage from a covered peril: fence - $5,000; gazebo - $7,500; tool shed - $15,000. What will his HO Policy will pay? Select one: A. $10,000 B. No coverage C. $25,000 D. $20,000 Mike owns a 16 foot. 100 H.P. outboard motor boat and he has an at-fault accident in which he totally destroys another boat. The owner of the boat sues Mike. - CORRECT ANSWER Which situation is not covered for liability under an HO3 policy? Select one: A. Mike used a 4-wheel ATV to haul yard clippings to his compost pile. A neighbor is on Mike's property and Mike accidentally runs into him with the ATV. B. Mike rents the community center for his son's wedding reception. A guest falls and the guest sues Mike for injuries.